WILLIAM DONALD SCHAEFER, Governor                   Ch. 673

(B)  A CREDIT GRANTOR SHALL COMPLY WITH THIS SECTION IF THE
CREDIT GRANTOR:

(1)  MAKES ANY LOAN SECURED BY A FIRST LIEN ON ANY
INTEREST IN OWNER-OCCUPIED RESIDENTIAL REAL PROPERTY; AND

(2)  AS A CONDITION OF MAKING THE LOAN, REQUIRES THE

CONSUMER BORROWER TO PURCHASE PROPERTY INSURANCE, TITLE

INSURANCE, OR CREDIT LOSS INSURANCE.

(C)  A CREDIT GRANTOR WHO MAKES A LOAN SUBJECT TO THIS
SECTION SHALL ACCEPT AS EVIDENCE OF INSURANCE A WRITTEN BINDER
ISSUED BY ANY AUTHORIZED INSURER OR ITS AGENT IF THE BINDER
INCLUDES OR IS ACCOMPANIED BY:

BORROWER;

PROPERTY;

(1)  THE NAME AND ADDRESS OF THE INSURED CONSUMER

(2)  THE NAME AND ADDRESS OF THE CREDIT GRANTOR;

(3)  A DESCRIPTION OF THE INSURED RESIDENTIAL REAL

(4)  A PROVISION THAT THE BINDER MAY NOT BE CANCELED
WITHIN THE TERM OF THE BINDER UNLESS THE CREDIT GRANTOR AND THE
INSURED CONSUMER BORROWER RECEIVE WRITTEN NOTICE OF THE
CANCELLATION AT LEAST 10 DAYS PRIOR TO THE CANCELLATION; AND

(5)  EXCEPT IN THE CASE OF THE RENEWAL OF A POLICY
SUBSEQUENT TO THE CLOSING OF THE LOAN, A PAID RECEIPT FOR THE
FULL AMOUNT OF THE APPLICABLE PREMIUM; AND

(6) THE AMOUNT OF COVERAGE.

(D) THIS SECTION DOES NOT PROHIBIT A CREDIT GRANTOR FROM
REFUSING TO HONOR A BINDER IN CASES WHERE:

(1)  THE CREDIT GRANTOR RECEIVES NOTICE OF THE
CANCELLATION OF THE BINDER BY THE INSURER; OR

(2)  AT THE EXPIRATION OF 45 30 DAYS OF THE DATE THE
BINDER WAS GIVEN, THE INSURER HAS FAILED TO ISSUE THE POLICY OF
INSURANCE.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall
take effect July 1, 1988.

Approved May 27, 1988.

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